Quick answer
Usually, yes. Employers pay most of the premium, 84% for single coverage and 74% for family coverage on average in 2025, and your share typically comes out of your paycheck before taxes. A marketplace plan can come out cheaper when your employer’s plan is expensive for you or your family, or when your income qualifies you for a large premium tax credit and the job-based plan isn’t considered affordable.
Key takeaways
- In 2025, the average worker paid $1,440 a year for single coverage and $6,850 for family coverage, with employers paying the rest. For what specific employers offer, see our guides to Amazon, Walmart, Home Depot and Kroger.
- Payroll contributions are usually pre-tax, which lowers your tax bill.
- If your employer offers affordable coverage, you can’t get a premium tax credit for a marketplace plan.
- Job-based coverage counts as affordable when your share for self-only coverage is under 9.96% of household income in 2026 (10.22% in 2027).
- Family members can qualify for marketplace credits if family coverage through work costs more than that share of income.
On this page
Why job-based coverage usually costs less
- Your employer pays most of it. According to KFF, workers paid 16% of the premium for single coverage and 26% for family coverage in 2025, on average.
- Your share is pre-tax. Premiums taken out of your paycheck usually aren’t subject to income or payroll taxes. See does health insurance from work come out of my paycheck.
- Group pricing. Large employers spread risk across many workers.
| Coverage | Average total premium, 2025 | Average worker share |
|---|---|---|
| Single | $9,325 | $1,440 a year |
| Family | $26,993 | $6,850 a year |
When a marketplace plan can cost less
- Your employer’s plan isn’t affordable. If your share of self-only coverage is more than 9.96% of household income in 2026 (10.22% in 2027), you may qualify for a premium tax credit on the marketplace.
- Covering your family is expensive. Your spouse and children are judged on the cost of family coverage. If that’s more than the affordability threshold, they may qualify for tax credits even if you don’t.
- The plan doesn’t meet minimum value, meaning it pays less than 60% of covered costs.
- Your employer offers an individual coverage HRA, which reimburses you for a plan you buy yourself.
For the details, see can I get health insurance through the marketplace if my employer offers it.
Compare more than the premium
A cheap paycheck deduction can hide a large deductible. Compare:
- What you pay per paycheck, times 26 or 24
- The deductible and out-of-pocket maximum
- Whether your doctors and medications are covered
- Employer HSA contributions, which count as free money toward care
The average single deductible on job-based plans was $1,886 in 2025, well below the average marketplace deductible of $3,786 in 2026.
Things to know before you turn down job-based coverage
- If the job plan is affordable and you decline it, you’ll pay full price for a marketplace plan.
- You can usually only drop or join an employer plan at open enrollment or after a qualifying life event. See can you drop your employer-sponsored health plan.
- Some employers pay you extra if you decline coverage. Weigh that against the tax savings and the employer’s share you’d give up.
See what you’d pay on your own: compare quotes by ZIP code.
Frequently asked questions
Can I buy a marketplace plan if my job offers insurance?
Yes, you can buy one. You just won’t get a premium tax credit if the job-based plan is affordable and meets minimum value.
Is it cheaper to add my spouse to my plan or get them their own?
It depends on the price of family coverage at your job. If it’s more than the affordability threshold, your spouse may qualify for a marketplace credit. Compare both.
What if my employer’s plan has a huge deductible?
A high deductible doesn’t make the plan unaffordable under the rules. Only your premium share for self-only coverage counts. But you can still compare total costs and choose what works for you.
Are there reasons to pick an employer plan even if it costs more?
Sometimes: a better network, lower deductible, employer HSA money or the convenience of payroll deduction.
Sources
This article is general information, not tax or insurance advice. Employer plans vary widely, so compare your plan’s costs with marketplace options on HealthCare.gov or with a licensed agent. Last reviewed September 2026.